Regulation

The long‑term financing of the economy in the new regulatory environment
(Contribution of a SCOR expert in an external publication) In the wake of the crisis and the recent…
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Solvency – Principles, Values and Rules
The Canadian insurance market pioneered the transition from formula to principles based solvency rules. There has been…
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New Accounting Rule – To DAC or Not To DAC?
Effective this year, insurers must comply with a new Federal Accounting Standards Board (FASB) rule, “Accounting for…
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Economic Capital: What It Is, and Isn’t
Traditionally, most insurers have determined capital requirements based strictly upon regulatory or rating agency formulas. But recently,…
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PBA: Preparing for Big Changes in the Way We Do Business
For quite some time, the efforts to develop a principles-based approach (PBA) to statutory reserves have been…
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Valuation Manual Holds the Details
The NAIC took an important step toward a principles-based approach to insurance reserving with its September 23,…
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Accounting Standards: All Fair for Assets and Liabilities?
Financial reporting is in a state of fundamental change for insurers, as reflected in major efforts underway…
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Preparing for Principles-Based Capital
As our industry moves towards a principles-based approach to valuation, many life insurers have focused on its…
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The Evolution of Capital Calculation
Chris Britton, Vice President, Economic Capital, recently interviewed Prakash Shimpi, Enterprise Risk Management (ERM) Practice Leader for…
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Regulation

Insurance regulatory and supervisory regimes aim at the protection of policyholders and supporting financial stability. The regulatory…
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The Basel II internal ratings-based (IRB) approach to capital adequacy for credit risk plays an important role…
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Regulation stands as one of society’s primary tools for managing the risks that pervade modern life. But…
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We define and study in this work a simple model allowing for a prudential valuation of solvency…
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The heart of insurance—what enables insurance to function—is risk aversion. Insurance transactions occur because policyholders prefer the…
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U.S. insurance regulation focuses predominantly on individual insurance entities, rather than on groups of commonly owned and…
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In recent years, there have been substantial changes in the approach to supervision of insurance groups. There…
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In a typical participating life insurance contract, the insurance company is entitled to a share of the…
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Solvency II is being enacted in the European Union (EU) to increase riskbased capital requirements and to…
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This paper discusses the regulatory requirement (Basel Committee, ECB-SSM and EBA) to measure financial institutions' major risks,…
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Dans le secteur de l'assurance automobile, la tarification évolue en fonction des avancées techniques et de la…
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Insurance regulation is typically aimed at policyholder protection. On the one hand, regulators attempt to ensure the…
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Prudential regulations adopted in response to recent crises aim to reduce risks faced by financial institutions. Nevertheless,…
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The objectives of this research project are to:  Provide a perspective on the definition of regulatory…
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We empirically analyze the costs and benefits of financial regulation based on a survey of 76 insurers…
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This paper provides a graphic overview on core legislation in the area of economic and financial services.…
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Traditionally, individual states have shared responsibility for regulating the US insurance industry. The Dodd-Frank Act changes this…
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This study investigates how U.S. property-liability insurers changed their behavior response to the risk-based capital (RBC) requirements…
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The Financial Stability Oversight Council (FSOC), established by the Dodd-Frank Act, has the extraordinary authority to designate…
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It is now six years since a devastating financial and economic crisis rocked the global economy. Supported…
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Navigating the sanctions minefield

> Regulation
03/2014
In January 2014 sanctions targeting Iran's key energy and financial sectors were relaxed for a period of…
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The December 2013 issuance of the Federal Insurance Office (FIO) report, How to Modernize and Improve the…
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Insurance markets are increasingly global, and any structural reform proposal should be premised on objective analyses of…
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Title V of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) created the Federal…
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Although the business of insurance has a long history, the regulation of insurance is a relatively modern…
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(in German) Abstract We compare the supervisory boards of Swiss and German companies and the special rules…
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An overview of the NAIC’s involvement in international discussions and key international regulatory developments. This testimony frome…
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The effect of federal insurance regulation has been a perennial topic of debate. Proponents have argued that…
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Large systematic risks, such as those arising from natural catastrophes, climatic changes and uncertain trends in longevity…
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This report reviews recent as well as planned changes to accounting and solvency regulations affecting insurers and…
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In the early 1990s, several U.S. states enacted community rating regulations to equalize the private health insurance…
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Since its inception in mid-1800s, insurance regulation in the U.S. has continued to evolve in response to…
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The recent financial crisis and its cascading effects on the global economy have drawn increased attention to…
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The 2007–2009 financial crisis resulted in failures of many large financial institutions and among the G8 countries,…
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State insurance regulators have well-developed receivership statutes, practices, and procedures to handle impaired and insolvent insurers. These…
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Plans for broad financial services regulatory reform in response to the recent global financial crisis have included…
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The Solvency 2 package, which went on force on January 1st, 2016, has had strong implications on…

Disclosure practices

Many insurers disclose Embedded Value reports, a 'capital market-consistent' valuation framework for their life insurance business, to…
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This article derives a framework for annual financial statements of a property-casualty insurer from first principles using…
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This paper investigates to what extent IFRS standards may cause incentives or constraints on long-term investment strategies…
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This paper empirically investigates disclosure practices in the European insurance industry, over the 2005-2010 time period. First,…
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This paper investigates incentives and disincentives for risk reporting practices by global insurance companies. We examine various…
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This study has identified gaps in reporting and disclosure of information by insurers particularly various facets of…
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In light of the upcoming Solvency II Pillar 3 disclosure regulation for the insurance industry, this paper…
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This paper considers the question of whether the growth in the size of financial statements witnessed over…
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In the European insurance industry, regulatory and reporting frameworks are currently subject to far-reaching reforms. We focus…
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Focuses on the framework, process and systems that agents need to have in place to meet the…
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Implications of the European Commission guidance on Test-Achats ruling
On 22 December 2011 the European Commission (EC) issued a guideline1 on the application of the now…
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EU Gender Directive ruled out discrimination against gender in charging premium for insurance products. This prohibition prevents…
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In Pay-As-You-Drive (PAYD) automobile insurance the premium depends on the 1distance travelled and driving patterns of the…
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The purpose of this study is to estimate the influence of microeconomic determinants for men and women…
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As of December 21, 2012, the use of gender as an insurance rating category was prohibited. Any…
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Europe is seen as the engine of public policy on gender equality, particularly through Member States' implementation…
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Although existing research has documented in very wide and detailed terms the impact of the presence of…
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This paper reconsiders the wide agreement that females are more risk averse than males providing a leap…
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Analysing over 10 million journeys made by members of London’s Cycle Hire Scheme, we find that female…
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As of December 21, 2012, the use of gender as an insurance rating category was prohibited in…
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Insurers use actuarial statistics as rating variables to differentiate and distinguish for the purposes of risk classification.…
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On 1st March 2011, in the Test-Achats case, the Court of Justice of the European Union ruled…
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By examining a German insurer's risk pool for 2011 we estimate the differences in premiums that exist…
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Beginning December 21, 2012 in the European Union, gender can no longer be used as a pricing…
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The Treasury launched a consultation in December 2011 on the Government’s proposed implementation of the European Court…
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The main reason that individuals have different insurance premiums and benefits is that they have different statistically…
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A report from the National Women’s Law Center (USA)
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Unlike the U.S., the ECJ resolved question on lawfulness of the use of the gender factor in…
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A publication from Insurance Europe,  the European insurance and reinsurance federation.
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The aim of this study is to inform the ongoing policy debate, and in particular to evaluate…
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To ensure equality in relation to gender such as, for example, access to healthcare, housing, criminal justice,…
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Insurance is to a large extent based on risk selection and classification. Legislators however are inclined to…
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A paper on unisex tariffs in the European Union before the Test-Achat ruling.
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Law Commission Review of Insurance Contract Law What you need to know
After years of discussion, consultation, Issues Papers and full engagement with insurers, consumer groups and other interested…
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Das Gendiagnostikgesetz und seine Auswirkungen auf die Risiko- und Leistungsprüfung
Genetische Untersuchungen gewinnen immer mehr an praktischer Bedeutung. Die Möglichkeiten, mittels Gentests Krankheiten zu diagnostizieren und deren…
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Verzicht auf Ausschlussklauseln in der Restschuldversicherung nach der VVG-Reform
Viele der im deutschen Versicherungsmarkt verwendeten Ausschlussklauseln für die Restschuldversicherung, häufig bezeichnet als „12/24- Klauseln“, waren bereits…
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The risk of money laundering: Prevention, challenges, outlook
The laundering of dirty money plays a key role in a large proportion of criminal activity which,…
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In the area of insurance law, there are several commentators who have written on the relationship between…
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The rules for interpreting insurance policies — the doctrine of contra proferentem for ambiguous policy language, and…
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Over twenty years ago, the author of this paper evaluated emerging technologies and predicted how they might…
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Risk classification refers to the use of observable characteristics by insurers to group individuals with similar expected…
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(in Spanish) Recently a number of Latin American countries have made significant reforms to its domestic laws…
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In June, the Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) released exposure drafts…
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What is fascinating about causation is that on the one hand it is essential for market players…
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This publication analyzes the increasingly wide range of regulatory drivers for insurers and examines ways in which…
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In the early 1970s Richard G. Horn established a methodology for analyzing the earnings of a life…
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Using a structural model of the interactions between governments, firms and insurance companies, we characterize the distortions…
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This Article suggests that insurance policies are not merely contracts but also are designed to perform particular…
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The  theory of  insurance  law and economics holds  that  the  insured will display  less care as a…
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Financial markets belong to the strongly supervised and regulated sectors of most modern economies. This applies to…
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The topic of environmental insurance is complex in several ways and requires a particular attention. A law…
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Many insurance law commentators believe that judges should regulate the substance of insurance policies by refusing to…
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The tax shields from debt financing reduce the cost of operations for firms with low cost of…
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This newsletter is produced by Linklaters' Insurance lawyers and is intended to keep you up to date…
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Life (re)insurance under Solvency II
The introduction of the new European supervisory System, Solvency II, is around the corner, even though now…
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Actuarial Function Holder Solvency 2/Responsible Actuary Swiss Solvency Test: Is the Legal Framework Adapted to an Independent and Efficient Role? Some Concrete Examples
(Contribution from SCOR experts in an external publication) Both in Switzerland and in the European Union, the…
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Modelling operational risk in the insurance industry
One of the major new features of Solvency II is that insurance companies must now devote a…
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Preparing for Solvency II - Points of debate in the Standard Formula
By introducing the measurement of risk and capital, Enterprise Risk Management (ERM) should replace the traditional accounting‐based…
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Solvency II – Equivalence Brings It Home
Purely domestic US life insurers may view Solvency II as exclusively a foreign concern. However, efforts are…
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Principle-based solvency: A comparison between Solvency II and the Swiss Solvency Test
With the adoption of the Solvency II directive, the European parliament has opened up a new area…
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Adapting the solvency regulations to times of crisis, accepting the riskiness of the situation
The G20 experts are calling for more capital in financial institutions. The need for a selective increase…
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From Principle Based Risk Management to Solvency Requirements
SCOR has traditionally been a strong proponent of advanced risk management methods and models in the insurance…
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Market Value Margin: Practical calculations under the Solvency II Cost of Capital approach
In the Solvency II framework, Market Value Margin (MVM) comes in addition to the Best Estimate valuation…
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2012 is a critical year for European insurers as they prepare to meet the requirements of Solvency…
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In the context of the quantitative requirements under pillar 1 of Solvency II, internal risk models quantify…
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Panorama

This paper from EIOPA approaches the issue of the low interest rate environment by applying a macroprudential…
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The Solvency II directive has introduced a specific so-called risk-neutral framework to valuate economic accounting quantities throughout…
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Intra-group transfers are risk management tools that are usually widely used to optimise the risk position of…
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Solvency II will change the way insurance and reinsurance undertakings determine their regulatory capital requirements, as well…
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In the paper we develop mathematical tools of quantile hedging in incomplete market. Those could be used…
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European Solvency II Survey 2014

> Regulation
04/2014
Across Europe, insurers are coming to terms with the long-awaited implementation timeline for Solvency II (SII). While…
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The details of the Omnibus II Directive, including the treatment of “long-term guarantees” (LTGs) were finally agreed…
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With its Guidelines EIOPA intends to significantly increase preparedness of both supervisors and insurers for Solvency II…
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The financial market environment poses serious challenges for insurance companies to provide stable returns on a long-term…
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We consider the issue of optimizing an insurance company’s asset allocation in the context of portfolio theory…
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The implementation of the Own Risk and Solvency Assessment is a critical issue raised by Pillar II…
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Over the past decade, European banking and insurance regulation has been subject to significant reforms. In this…
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Pursuant to art. 45 of the Solvency II Framework Directive, all insurance undertakings will be obliged to…
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This paper compares solvency capital requirements under Solvency I and Solvency II for a sample mid-size insurance…
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Insurance regulation in the U.S. has undergone significant reforms over its 150-year history. Some of these changes…
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CRO Guide to Solvency II

> Regulation
10/2012
The Chief Risk Officer (CRO) is accountable for driving the success of an insurance company’s journey towards…
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The implementation of the Own Risk and Solvency Assessment is a critical issue raised by Pillar II…
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In the course of creating a single European market for financial services and in the wake of…
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In this paper, we conduct an in-depth analysis of the impact of private equity investments on the…
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In today’s financial system, complex financial institutions are connected through an opaque network of financial exposures. These…
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Internal Model

The Prudential Regulation Authority (PRA) has completed internal model approval process data reviews on over 50 firms…
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Reinsurers have invested extensively in developing models that are aimed at the holistic measurement of risk and…
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Many companies have expended significant time and effort as they prepare to comply with the forthcoming major…
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L’Autorité de contrôle prudentiel et de résolution (ACPR) est l’organe de supervision français de la banque et…
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